ZBH a medical device company falls on earnings beat LONG
Updated
ZBH is a big global medical device company. It is old school. Aluminum titanium polymers, plates screws wires. Hollywood stars are familiar as it makes the devices for leg lengthening surgery. ( shortening is easy, lengthening not so much) I am familiar because in the past I have served as a consultant for this company. It business is mainly orthopedic elective surgery in supporting orthopedic surgeons serving their patients spine straightening to braces for after a neck fracture.
Not a surprise but a lot of surgeries were put off during Covid. So much that the catching up is still ongoing. This is part of the reason why healthcare and the medical technology sectors are expected to be among the hottest of 2024.
So much for fundamentals, the technical analysis support for a long trade is commented on the chart. On it you can see the trend since the last earnings. ZBH reported Thursday, January 7th.
with an earnings beat and a dip in preparation for a possible rip. The lunch hour of Thursday's session would be the next best time while another time is when you find another dip after you
have read this.
Want to trade and hedge your trade? Just take a trade in SYK and let them have a race. Cut the underperformer and use the proceeds to get more of the other. It's a very simple plan.
Want a broad trade in medical technology? Take a look at XBI or leveraged LABU.
Not a surprise but a lot of surgeries were put off during Covid. So much that the catching up is still ongoing. This is part of the reason why healthcare and the medical technology sectors are expected to be among the hottest of 2024.
So much for fundamentals, the technical analysis support for a long trade is commented on the chart. On it you can see the trend since the last earnings. ZBH reported Thursday, January 7th.
with an earnings beat and a dip in preparation for a possible rip. The lunch hour of Thursday's session would be the next best time while another time is when you find another dip after you
have read this.
Want to trade and hedge your trade? Just take a trade in SYK and let them have a race. Cut the underperformer and use the proceeds to get more of the other. It's a very simple plan.
Want a broad trade in medical technology? Take a look at XBI or leveraged LABU.
Note
SYK ran hard after earnings 8 sessions ago. ZBH while in its shadows can also run.It also has the advantage of a lower share price so more traders can participate (IMO)
Note
For a piece of the action with less risk less reward and much lower share priceall as trade-offs from ZBH you might consider XBI, the medical techology ETF
Note
XBI has the good entry as a pullback from a double top and in consolidationNote
If you are looking for the subsector market leader Intuitive Surgical is as good as it gets. Next earnings April. It sells into the "robotic" surgery end users.Note
ISGR has a lot of volatility at earnings as you can see on the MACD- same as what is happening for ZBH right now. No worries. Blessed be the patient for they too will have rewards in due time.Trade active
While the price is sideways, I am in this trade for at least an intermediate-term and am patient that it will play out well.Note
News catalysts like this unfortunate medical injury/fatality are bearish for price:msn.com/en-us/health/medical/florida-woman-died-after-surgical-robot-burned-hole-in-organs-lawsuit-says/ar-BB1i0k6j
beckershospitalreview.com/legal-regulatory-issues/robot-devicemaker-sued-over-patient-death.html
The reality is the manufacturer in this case Intuitive Surgical is insulated from liability because unless the devise is proven defective the liability for the event is
squarely on the surgeon and to a certain extent the hospital that gives him surgical privileges. The manufacturer is sued because the pockets are deeper
than those of the surgeon's insurance carrier and possibly the hospital's as well. However, the headlines are there and do have an impact on those who do not understand legal pragmatics nor the logistics used in litigation.
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